Dodgers file reorganization plan in federal court

Dodgers file reorganization plan in federal court

By Ken Gurnick / MLB.com | 01/20/12 4:13 PM EST

LOS ANGELES -- The Dodgers filed their reorganization plan with a federal bankruptcy court in Delaware on Friday, which will bring the club out of Chapter 11 protection through a sale of the team by April 30.
The plan -- which is expected to be approved by Judge Kevin Gross -- includes previous developments in the case that began with the bankruptcy filing last June, and will culminate in the anticipated auction sale closing date of April 30. The Dodgers say the plan will allow for satisfying all creditor claims. It calls for initial bids for the club by Monday and a selection by current owner Frank McCourt of the winning bidder by April 1.
"The Dodgers are fully committed to maximizing the value of the debtors' estates," the club said in a statement. "The Dodgers are not only a storied franchise with truly global appeal, but also present the attractive potential for strong cash flow and significant value enhancement.
"The combination of these unique attributes is helping to drive significant interest from potential bidders in the Dodger sale process. The Dodgers expect to identify the highest and best bid prior to the confirmation hearing, which is anticipated to be in April."
The club, which has been hamstrung by $573 million in debt, is expected to fetch $1.5 billion or more through the auction.